Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.
what is the definition of risk management
risk management services
risk management certification
risk management for project management
risk management terms
celgene risk management
risk management framework
risk management jobs
business research topics for mba
mba topics for presentation
mba project topics
mba research topics in management
dissertation topics for mba
mba finance research topics
mba topics on strategic management
thesis topic for mba
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.
what is the definition of risk management
risk management services
risk management certification
risk management for project management
risk management terms
celgene risk management
risk management framework
risk management jobs
business research topics for mba
mba topics for presentation
mba project topics
mba research topics in management
dissertation topics for mba
mba finance research topics
mba topics on strategic management
thesis topic for mba
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
The above presentation talks about the risk involved in any project. The project risk identification, quantification, response and its control is also thoroughly explained.
Risk Mitigation, Monitoring and Management Plan (RMMM)Navjyotsinh Jadeja
Software Risk is an expectation of loss, a potential problem that may or may not occur in the future. It is generally caused due to lack of information, control or time.
RISK – Possible loss or problem (Specifically in S/W development process)
MITIGATION – Efforts or Process to overcome the Risks or reduce the impact. (Comes after Avoidance Scenario)
MONITORING – Check to ensure effective execution (Observation)
MANAGEMENT – The subtle are of dealing with the risk and keep moving forward
Abstract Risk management is a critical aspect of project management, as it helps identify, assess, and mitigate potential threats and opportunities that can impact a project's success. This comprehensive guide delves into the intricacies of risk management in project management. It explores the key concepts, processes, methodologies, and best practices that project managers and teams can employ to ensure the successful delivery of projects while minimizing uncertainties and maximizing opportunities. Table of Contents Introduction Understanding Project Risk The Importance of Risk Management in Project Management Key Concepts in Risk Management Risk vs. Issue Types of Risks Risk Tolerance vs. Risk Aversion Risk Appetite The Risk Management Process Risk Identification Risk Assessment Risk Mitigation Risk Monitoring and Control Risk Communication Risk Identification Techniques for Identifying Risks The Role of Stakeholders in Identifying Risks Real-Life Examples of Risk Identification Risk Assessment Qualitative Risk Assessment Quantitative Risk Assessment Risk Probability and Impact Risk Matrix Risk Register Sensitivity Analysis Risk Mitigation Risk Response Planning Risk Avoidance Risk Mitigation Risk Transfer Risk Acceptance Real-Life Case Studies of Risk Mitigation Risk Monitoring and Control Continuous Risk Monitoring Performance Metrics Change Management Contingency Planning Risk Communication Stakeholder Communication Reporting and Documentation Managing Expectations Risk Management Methodologies Traditional vs. Agile Approaches Risk Management in Waterfall Projects Risk Management in Agile Projects Hybrid Approaches Best Practices in Risk Management Establishing a Risk Management Plan Creating a Risk Management Team Regular Reviews and Updates Learning from Past Projects Challenges and Pitfalls in Risk Management Overlooking Risks Inadequate Risk Assessment Poor Communication Scope Creep Benefits of Effective Risk Management Improved Project Outcomes Enhanced Stakeholder Satisfaction Cost and Time Savings Increased Team Morale Case Studies in Risk Management The Sydney Opera House Project The Mars Climate Orbiter Mission The Panama Canal Expansion Project Future Trends in Risk Management Artificial Intelligence and Machine Learning Data Analytics for Risk Prediction Risk Management in Remote Work Environments Conclusion The Ongoing Importance of Risk Management Final Thoughts on Effective Project Risk Management Introduction Effective project management is a complex and multifaceted process. Projects are often fraught with uncertainties and variables that can impact their success. This is where risk management steps in. Risk management is the practice of identifying, assessing, and mitigating potential threats and opportunities that can affect a project's objectives. It is an integral part of project management that ensures project teams are prepared to navigate the unpredictable terrain of complex endeavors. Key Concepts in Risk Management B
This lecture provides short and comprehensive view of software project and risk management. It has basic examples and calculations which is main concern of software project manager. This lecture helps to understand basics of risk management.
Real Estate Lending and Sustainability: The Business Case for Risk Management...GRESB
A presentation about the sustainability risks lenders face and how the industry can adapt to incorporate new mitigation strategies.
In recent years sustainability risks and drivers have had a transformational impact on the way equity investors approach real estate investments. With many institutions and private equity firms increasingly focused on lending as an additional form of real estate exposure, sustainability issues have to be considered from a new angle. In particular, environmental policy instruments, in the form of Minimum Energy Efficiency Standards, and market drivers, such as the inaugural GRESB Debt Survey, are attracting lenders' attention.
The above presentation talks about the risk involved in any project. The project risk identification, quantification, response and its control is also thoroughly explained.
Risk Mitigation, Monitoring and Management Plan (RMMM)Navjyotsinh Jadeja
Software Risk is an expectation of loss, a potential problem that may or may not occur in the future. It is generally caused due to lack of information, control or time.
RISK – Possible loss or problem (Specifically in S/W development process)
MITIGATION – Efforts or Process to overcome the Risks or reduce the impact. (Comes after Avoidance Scenario)
MONITORING – Check to ensure effective execution (Observation)
MANAGEMENT – The subtle are of dealing with the risk and keep moving forward
Abstract Risk management is a critical aspect of project management, as it helps identify, assess, and mitigate potential threats and opportunities that can impact a project's success. This comprehensive guide delves into the intricacies of risk management in project management. It explores the key concepts, processes, methodologies, and best practices that project managers and teams can employ to ensure the successful delivery of projects while minimizing uncertainties and maximizing opportunities. Table of Contents Introduction Understanding Project Risk The Importance of Risk Management in Project Management Key Concepts in Risk Management Risk vs. Issue Types of Risks Risk Tolerance vs. Risk Aversion Risk Appetite The Risk Management Process Risk Identification Risk Assessment Risk Mitigation Risk Monitoring and Control Risk Communication Risk Identification Techniques for Identifying Risks The Role of Stakeholders in Identifying Risks Real-Life Examples of Risk Identification Risk Assessment Qualitative Risk Assessment Quantitative Risk Assessment Risk Probability and Impact Risk Matrix Risk Register Sensitivity Analysis Risk Mitigation Risk Response Planning Risk Avoidance Risk Mitigation Risk Transfer Risk Acceptance Real-Life Case Studies of Risk Mitigation Risk Monitoring and Control Continuous Risk Monitoring Performance Metrics Change Management Contingency Planning Risk Communication Stakeholder Communication Reporting and Documentation Managing Expectations Risk Management Methodologies Traditional vs. Agile Approaches Risk Management in Waterfall Projects Risk Management in Agile Projects Hybrid Approaches Best Practices in Risk Management Establishing a Risk Management Plan Creating a Risk Management Team Regular Reviews and Updates Learning from Past Projects Challenges and Pitfalls in Risk Management Overlooking Risks Inadequate Risk Assessment Poor Communication Scope Creep Benefits of Effective Risk Management Improved Project Outcomes Enhanced Stakeholder Satisfaction Cost and Time Savings Increased Team Morale Case Studies in Risk Management The Sydney Opera House Project The Mars Climate Orbiter Mission The Panama Canal Expansion Project Future Trends in Risk Management Artificial Intelligence and Machine Learning Data Analytics for Risk Prediction Risk Management in Remote Work Environments Conclusion The Ongoing Importance of Risk Management Final Thoughts on Effective Project Risk Management Introduction Effective project management is a complex and multifaceted process. Projects are often fraught with uncertainties and variables that can impact their success. This is where risk management steps in. Risk management is the practice of identifying, assessing, and mitigating potential threats and opportunities that can affect a project's objectives. It is an integral part of project management that ensures project teams are prepared to navigate the unpredictable terrain of complex endeavors. Key Concepts in Risk Management B
This lecture provides short and comprehensive view of software project and risk management. It has basic examples and calculations which is main concern of software project manager. This lecture helps to understand basics of risk management.
Real Estate Lending and Sustainability: The Business Case for Risk Management...GRESB
A presentation about the sustainability risks lenders face and how the industry can adapt to incorporate new mitigation strategies.
In recent years sustainability risks and drivers have had a transformational impact on the way equity investors approach real estate investments. With many institutions and private equity firms increasingly focused on lending as an additional form of real estate exposure, sustainability issues have to be considered from a new angle. In particular, environmental policy instruments, in the form of Minimum Energy Efficiency Standards, and market drivers, such as the inaugural GRESB Debt Survey, are attracting lenders' attention.
Risks are potential problems that might affect the successful completion of a software project. Risks involve uncertainty and potential losses. Risk analysis and management are intended to help a software team understand and manage uncertainty during the development process. The important thing is to remember that things can go wrong and to make plans to minimize their impact when they do. The work product is called a Risk Mitigation, Monitoring, and Management Plan (RMMM).
what is user support system???
This file will provide detailed overview about the user support system and how it will works in human computer interaction and why we need it .....
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
Keynote at DIGIT West Expo, Glasgow on 29 May 2024.
Cheryl Hung, ochery.com
Sr Director, Infrastructure Ecosystem, Arm.
The key trends across hardware, cloud and open-source; exploring how these areas are likely to mature and develop over the short and long-term, and then considering how organisations can position themselves to adapt and thrive.
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Albert Hoitingh
In this session I delve into the encryption technology used in Microsoft 365 and Microsoft Purview. Including the concepts of Customer Key and Double Key Encryption.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
3. *
Definition of Risk
● A risk is a potential problem – it might happen and it might not
● Conceptual definition of risk
● Risk concerns future happenings
● Risk involves change in mind, opinion, actions, places, etc.
● Risk involves choice and the uncertainty that choice entails
● Two characteristics of risk
● Uncertainty – the risk may or may not happen, that is, there are no 100%
risks (those, instead, are called constraints)
● Loss – the risk becomes a reality and unwanted consequences or losses
occur
4. *
Risk Categorization – Approach #1
● Project risks
● They threaten the project plan
● If they become real, it is likely that the project schedule will slip and that
costs will increase
● Technical risks
● They threaten the quality and timeliness of the software to be produced
● If they become real, implementation may become difficult or impossible
● Business risks
● They threaten the viability of the software to be built
● If they become real, they jeopardize the project or the product
(More on next
slide)
5. *
Risk Categorization – Approach #1
(continued)
● Sub-categories of Business risks
● Market risk – building an excellent product or system that no one really
wants
● Strategic risk – building a product that no longer fits into the overall
business strategy for the company
● Sales risk – building a product that the sales force doesn't understand how
to sell
● Management risk – losing the support of senior management due to a
change in focus or a change in people
● Budget risk – losing budgetary or personnel commitment
6. *
Risk Categorization – Approach #2
● Known risks
● Those risks that can be uncovered after careful evaluation of the project plan,
the business and technical environment in which the project is being
developed, and other reliable information sources (e.g., unrealistic delivery
date)
● Predictable risks
● Those risks that are extrapolated from past project experience (e.g., past
turnover)
● Unpredictable risks
● Those risks that can and do occur, but are extremely difficult to identify in
advance
7. *
Reactive vs. Proactive Risk
Strategies
● Reactive risk strategies
● "Don't worry, I'll think of something"
● The majority of software teams and managers rely on this approach
● Nothing is done about risks until something goes wrong
● The team then flies into action in an attempt to correct the problem rapidly
(fire fighting)
● Crisis management is the choice of management techniques
● Proactive risk strategies
● Steps for risk management are followed (see next slide)
● Primary objective is to avoid risk and to have a contingency plan in place
to handle unavoidable risks in a controlled and effective manner
8. *
Steps for Risk Management
1. Identify possible risks; recognize what can go wrong
2. Analyze each risk to estimate the probability that it will occur
and the impact (i.e., damage) that it will do if it does occur
3. Rank the risks by probability and impact
- Impact may be negligible, marginal, critical, and catastrophic
4. Develop a contingency plan to manage those risks having
high probability and high impact
10. *
Background
● Risk identification is a systematic attempt to specify threats to the
project plan
● By identifying known and predictable risks, the project manager takes
a first step toward avoiding them when possible and controlling them
when necessary
● Generic risks
● Risks that are a potential threat to every software project
● Product-specific risks
● Risks that can be identified only by those a with a clear understanding of
the technology, the people, and the environment that is specific to the
software that is to be built
● This requires examination of the project plan and the statement of scope
● "What special characteristics of this product may threaten our project
plan?"
11. *
Risk Item Checklist
● Used as one way to identify risks
● Focuses on known and predictable risks in specific subcategories (see
next slide)
● Can be organized in several ways
● A list of characteristics relevant to each risk subcategory
● Questionnaire that leads to an estimate on the impact of each risk
● A list containing a set of risk component and drivers and their probability
of occurrence
12. *
Known and Predictable Risk Categories
● Product size – risks associated with overall size of the software to be
built
● Business impact – risks associated with constraints imposed by
management or the marketplace
● Customer characteristics – risks associated with sophistication of the
customer and the developer's ability to communicate with the customer
in a timely manner
● Process definition – risks associated with the degree to which the
software process has been defined and is followed
● Development environment – risks associated with availability and
quality of the tools to be used to build the project
● Technology to be built – risks associated with complexity of the
system to be built and the "newness" of the technology in the system
● Staff size and experience – risks associated with overall technical and
project experience of the software engineers who will do the work
13. *
Questionnaire on Project Risk
1. Have top software and customer managers formally committed to
support the project?
2. Are end-users enthusiastically committed to the project and the
system/product to be built?
3. Are requirements fully understood by the software engineering team
and its customers?
4. Have customers been involved fully in the definition of
requirements?
5. Do end-users have realistic expectations?
6. Is the project scope stable?
(Questions are ordered by their relative importance to project
success)
(More on next
14. *
Questionnaire on Project Risk
(continued)
7. Does the software engineering team have the right mix of skills?
8. Are project requirements stable?
9. Does the project team have experience with the technology to be
implemented?
10. Is the number of people on the project team adequate to do the job?
11. Do all customer/user constituencies agree on the importance of the
project and on the requirements for the system/product to be built?
15. *
Risk Components and Drivers
● The project manager identifies the risk drivers that affect the following risk
components
● Performance risk - the degree of uncertainty that the product will meet its
requirements and be fit for its intended use
● Cost risk - the degree of uncertainty that the project budget will be maintained
● Support risk - the degree of uncertainty that the resultant software will be easy
to correct, adapt, and enhance
● Schedule risk - the degree of uncertainty that the project schedule will be
maintained and that the product will be delivered on time
● The impact of each risk driver on the risk component is divided into one of
four impact levels
● Negligible, marginal, critical, and catastrophic
● Risk drivers can be assessed as impossible, improbable, probable, and
frequent
17. *
Background
● Risk projection (or estimation) attempts to rate each risk in two ways
● The probability that the risk is real
● The consequence of the problems associated with the risk, should it occur
● The project planner, managers, and technical staff perform four risk
projection steps (see next slide)
● The intent of these steps is to consider risks in a manner that leads to
prioritization
● Be prioritizing risks, the software team can allocate limited resources
where they will have the most impact
18. *
Risk Projection/Estimation Steps
1. Establish a scale that reflects the perceived likelihood of a risk (e.g., 1-
low, 10-high)
2. Delineate the consequences of the risk
3. Estimate the impact of the risk on the project and product
4. Note the overall accuracy of the risk projection so that there will be no
misunderstandings
19. *
Contents of a Risk Table
● A risk table provides a project manager with a simple technique for
risk projection
● It consists of five columns
● Risk Summary – short description of the risk
● Risk Category – one of seven risk categories (slide 12)
● Probability – estimation of risk occurrence based on group input
● Impact – (1) catastrophic (2) critical (3) marginal (4) negligible
● RMMM – Pointer to a paragraph in the Risk Mitigation, Monitoring, and
Management Plan
Risk Summary Risk Category Probability Impact (1-4) RMMM
(More on next
20. *
Developing a Risk Table
● List all risks in the first column (by way of the help of the risk item
checklists)
● Mark the category of each risk
● Estimate the probability of each risk occurring
● Assess the impact of each risk based on an averaging of the four risk
components to determine an overall impact value (See next slide)
● Sort the rows by probability and impact in descending order
● Draw a horizontal cutoff line in the table that indicates the risks that
will be given further attention
21. *
Assessing Risk Impact
● Three factors affect the consequences that are likely if a risk does occur
● Its nature – This indicates the problems that are likely if the risk occurs
● Its scope – This combines the severity of the risk (how serious was it) with its
overall distribution (how much was affected)
● Its timing – This considers when and for how long the impact will be felt
● The overall risk exposure formula is RE = P x C
● P = the probability of occurrence for a risk
● C = the cost to the project should the risk actually occur
● Example
● P = 80% probability that 18 of 60 software components will have to be developed
● C = Total cost of developing 18 components is $25,000
● RE = .80 x $25,000 = $20,000
23. *
Background
● An effective strategy for dealing with risk must consider three issues
(Note: these are not mutually exclusive)
● Risk mitigation (i.e., avoidance)
● Risk monitoring
● Risk management and contingency planning
● Risk mitigation (avoidance) is the primary strategy and is achieved
through a plan
● Example: Risk of high staff turnover (see next slide)
24. *
Background (continued)
● Meet with current staff to determine causes for turnover (e.g., poor
working conditions, low pay, competitive job market)
● Mitigate those causes that are under our control before the project starts
● Once the project commences, assume turnover will occur and develop
techniques to ensure continuity when people leave
● Organize project teams so that information about each development
activity is widely dispersed
● Define documentation standards and establish mechanisms to ensure that
documents are developed in a timely manner
● Conduct peer reviews of all work (so that more than one person is "up to
speed")
● Assign a backup staff member for every critical technologist
Strategy for Reducing Staff Turnover
25. *
Background (continued)
● During risk monitoring, the project manager monitors factors that may
provide an indication of whether a risk is becoming more or less likely
● Risk management and contingency planning assume that mitigation
efforts have failed and that the risk has become a reality
● RMMM steps incur additional project cost
● Large projects may have identified 30 – 40 risks
● Risk is not limited to the software project itself
● Risks can occur after the software has been delivered to the user
26. *
Background (continued)
● Software safety and hazard analysis
● These are software quality assurance activities that focus on the
identification and assessment of potential hazards that may affect software
negatively and cause an entire system to fail
● If hazards can be identified early in the software process, software design
features can be specified that will either eliminate or control potential
hazards
27. *
The RMMM Plan
● The RMMM plan may be a part of the software development plan.
● Once RMMM has been documented and the project has begun, the risk
mitigation, and monitoring steps begin
● Risk mitigation is a problem avoidance activity
● Risk monitoring is a project tracking activity
● Risk monitoring has three objectives
● To assess whether predicted risks do, in fact, occur
● To ensure that risk aversion steps defined for the risk are being properly
applied
● To collect information that can be used for future risk analysis
● The findings from risk monitoring may allow the project manager to
ascertain what risks caused which problems throughout the project
28. *
Seven Principles of Risk Management
● Maintain a global perspective
● View software risks within the context of a system and the business
problem that is is intended to solve
● Take a forward-looking view
● Think about risks that may arise in the future; establish contingency plans
● Encourage open communication
● Encourage all stakeholders and users to point out risks at any time
● Integrate risk management
● Integrate the consideration of risk into the software process
● Emphasize a continuous process of risk management
● Modify identified risks as more becomes known and add new risks as
better insight is achieved
● Develop a shared product vision
● A shared vision by all stakeholders facilitates better risk identification and
assessment
● Encourage teamwork when managing risk
● Pool the skills and experience of all stakeholders when conducting risk
management activities
29. *
Summary
● Whenever much is riding on a software project, common sense dictates risk
analysis
● Yet, most project managers do it informally and superficially, if at all
● However, the time spent in risk management results in
● Less upheaval during the project
● A greater ability to track and control a project
● The confidence that comes with planning for problems before they occur
● Risk management can absorb a significant amount of the project planning
effort…but the effort is worth it
☺